Nationwide’s Hybrid LTC Product to See Increase in Rates!

04/22/2020

We hope this message finds you, your families, and your staffs in good spirits. Due to the persistent low interest rate environment carriers that offer fully guaranteed products have had to adjust. We were recently notified of Nationwide’s plans to increase rates on CareMatters II (their LTC Hybrid product). This price increase applies to new cases only however current pricing can still be maintained.

Applications
must be signed and In Good Order no
later than May 10th, 2020. Further, cases will need to be placed
in-force and funded no later than July 24th, 2020.

Premium ChangesWe will not be able to run new rates until May 8th, 2020 but have been told the increases will range from 8% – 14% across all payment, age, and inflation options. There are no changes to the product structure, contract language, forms, compensation, or types of benefits provided. There are no changes to in-force policies as a result of this update.

Update in Maximum Issue Age for
CareMatters® II
Beginning May 11, 2020, the maximum issue age for Nationwide CareMatters II
will increase to 70. This applies to single pays, 5-pays, and 10-pays using the
Minimum Refund of Premium with Maximum LTC Benefit option only. The maximum
issue age for Vested Refund of Premium and Step-Up Refund of Premium remains
69. Extended pay options have not changed: Pay to Attained Age 65 maximum issue
age is 54; Pay to Attained Age 100 maximum issue age is 65.

As a reminder, the
underwriting for CareMatters does not involve a physical exam but rather just a telephone interview. We are
able to complete applications online which cuts down on the contact and time
needed from your clients.

This notice follows the
pricing increase previously announced by Lincoln MoneyGuard. Now is a good time
for clients to take advantage of current pricing with a conservative investment
that safeguards their financial futures in the event of a long-term healthcare
event.